News Release - May 14, 2009
SASKATCHEWAN PEOPLE BUY INTO LOCAL VENTURE CAPITAL FUNDS
Saskatchewan residents have shown strong support for local entrepreneurs by investing close to $60 million through Labour Sponsored Venture Capital Corporations (LSVCC).
The two funds; Golden Opportunities Fund Inc. and SaskWorks Venture Fund Inc. invest in Saskatchewan companies to earn competitive long term returns for shareholders. They operate through the LSVCC, under the Invest in Saskatchewan Program.
"Saskatchewan people continue to have confidence in local entrepreneurs and businesses by putting their money in these two funds," Enterprise and Innovation Minister Lyle Stewart said. "It is why we raised the funding cap and adjusted the tax credits to make our institutions more competitive."
"Saskatchewan has embraced Golden Opportunities Fund's industry leading transparency and ability to provide consistent returns and stable value for shareholders especially in these turbulent economic times," Golden Opportunities President and CEO Grant Kook said. "For the eleventh consecutive RRSP season investors have shown overwhelming support for Golden with new subscriptions of approximately $24 million, taking our total share capital raised to date to $152 million and making us the largest Provincial Labor Fund in Saskatchewan."
"As Saskatchewan's top performing and fastest growing labour sponsored fund, SaskWorks appreciated the government's foresight and co-operation in increasing the annual cap from $25 million to $50 million per fund," SaskWorks President and CEO Randy Beattie said. "This increased cap allowed us to raise $34 million this season, and to increase our shareholder base by 30 per cent, to more than 15,600 Saskatchewan residents. We anticipate making significant further use of the increased cap given that we have already approved over $32 million in investments in Saskatchewan businesses in the last six months."
The Invest in Saskatchewan Program provides tax incentives to encourage investment into registered pool and employee funds. Investors are eligible to receive both provincial and federal tax credits totalling 35 per cent on the first $5,000 invested per investor per year.
"The Invest in Saskatchewan Program is designed to encourage Saskatchewan residents to make equity investments in small- and medium-sized Saskatchewan-based businesses. Over the long-term, the program will build lasting and productive relationships with labour, business and government for the benefit of the Saskatchewan economy," Stewart said.
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